Group pushes bioscience tax break bill; Promoting medical research can reap big economic benefits, group says

BYLINE: Ken Dey

Staff

Without more incentives to develop Idaho's science and technology industry, the state runs the risk of outsiders driving the state's economy, the president of the Idaho Bioscience Association warned state leaders Monday.

"If we are the state that's noted for cheap land and cheap labor, people are going to come in and buy the land, raise the rates of the land, and pretty soon we're servicing their investments," association President Phil Syrdal said at his organization's annual legislative luncheon. "We've lost our ability for self-determination."

The luncheon was attended by more than 100 people about evenly split between industry representatives and legislators.

Syrdal's organization and others in the high-tech industry are pushing a bill that would give investors in Idaho bioscience and technology companies a state tax break. The bill has been drafted but is still awaiting a sponsor. Syrdal said the bill is expected to get a hearing in the House Revenue and Taxation committee.

The bill would offer a 45 percent tax break for investors in bioscience companies and a 35 percent break for those who invest in tech companies. The credits would be transferable, but would be capped at a maximum of $10 million a year for five years.

The bill was supported by the the Governor's Science and Technology Advisory Council, which included it in a nearly $50 million package of funding and incentives recommended to Gov. Butch Otter. But Otter did not propose the incentives to lawmakers. He hasn't said if he would sign them if passed.

Syrdal estimates that over the next 10 years, new tax revenues would exceed the costs of the incentives by nine times. "It would produce over 5,000 new jobs averaging over $61,000 a year," Syrdal said.

While Idaho is lacking in research dollars, neighboring states are increasing the amount of research money they get each year.

Peter Kohler, the past president of the Oregon Health and Science University in Portland, told the audience that a campaign launched in 1987 to bring more research to the university has boosted research funding there to $300 million, up from $40 million.

Contact reporter Ken Dey at kdeyidahostatesman.com or 672-6757.